Tokyo (ANTARA News) - President Susilo Bambang Yudhoyono during a stopover in Tokyo en route to Washington DC on Friday received a report from Bank Indonesia (BI) Governor Boediono that the national banking sector was still in a safe condition.
Minister/State Secretary Hatta Rajasa told reporters covering the president's overseas trip that Yudhoyono had had a long-distance conversation with Boediono in Jakarta on the latest developments in the national banking sector following the failure of PT Bank Century Tbk to settle interbank transactions.
"The President received information from the Bank Indonesia governor on the current banking situation which has remained good," Minister Rajasa said.
Wherever he was, the president always communicated with the vice president, cabinet ministers and other high ranking state officials in Jakarta, Rajasa said.
BI, Indonesia's central bank, said in a statement on Thursday PT Bank Century Tbk was having problems in making interbank payments due to technical problems but the case was no threat to the country's banking system.
The central bank said that the problem at Bank Century was expected to be resolved by Friday.
President Yudhoyono left for the United States on Thursday to attend a weekend meeting of Group of 20 (G-20) leaders in Washington DC on November 15.
Yudhoyono's visit to Washington would be part of a 13-day tour of four countries, namely the Un1ted States, Mexico, Brazil, and Peru November 13-26, 2008.
In Mexico and Brazil, Yudhoyono would hold bilateral meetings with the leaders of the two countries while in Peru, he would attend the 16th Asia Pacific Economic Cooperation (APEC) meeting.
On Saturday, November 15, President Yudhoyono and other heads of state/government of G-20 countries would meet to discuss overhauling the international financial system in response to the credit crisis and the threat of a global recession. adapted from http://www.antara.co.id
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Jumat, 14 November 2008
Kamis, 13 November 2008
Banking Tips
By Aila Sanchez
It is important to be a wise customer to ensure that you are not losing money, and preferably earning more, with each bank transaction. Cyberspace has a lot of information on how to do this properly. In fact, this site will provide you with tips not just for conducting transactions online but also saving money in general.
No matter how many tips you get, you have to bear in mind the most essential things when it comes to choosing the bank with which to sign up for an account. Here are some of them:
1. Make sure that the online bank is legitimate. The Internet provides an opportunity for banks to offer services more efficiently and to customers to make transactions more conveniently. It also gives an opportunity for swindlers to victimize clueless clients, whose only goal is to create an account online. Don't let yourself be one of them. Trust an online bank that has already established a name and is authorized or endorsed by the right institutions. If you have any slight doubt that the website you are on is fraudulent, close your browser immediately.
2. Choose the bank with which your deposits are insured. You don't want your money to vanish if your bank fails or goes bankrupt. Deposit insurance will give you a guarantee that you will get your money back, and sometimes, with accrued interest.
3. Keep your information private. Some people claim that online banking is safer than brick-and-mortar banking because no one else can have access to your account. This is only true if you don't share private information, especially your passwords, PIN numbers and other information. Never reply to e-mails with your login details. Remember that the only way you can access your account is to visit the official website.
4. Ask. As a customer, you have a right to know everything about your account, a transaction or any service that the bank offers. If there is something you don't understand, especially about fees, charges and rates, do not hesitate to call one of their representatives to inquire.
There are countless Internet banks that mushroom left and right and you have to be armed with the right information regarding what they offer and how to deal with them. It is not enough that you conduct transactions conveniently and comfortably. What is more important is to make sure that each transaction is secure, protected and if possible, profitable.
Want to read more of this article? You can read more tips on Banking Tips, plus other Online Banking Tips only at http://onlinebankpro.com/
Article Source: http://EzineArticles.com/?expert=Aila_Sanchez
It is important to be a wise customer to ensure that you are not losing money, and preferably earning more, with each bank transaction. Cyberspace has a lot of information on how to do this properly. In fact, this site will provide you with tips not just for conducting transactions online but also saving money in general.
No matter how many tips you get, you have to bear in mind the most essential things when it comes to choosing the bank with which to sign up for an account. Here are some of them:
1. Make sure that the online bank is legitimate. The Internet provides an opportunity for banks to offer services more efficiently and to customers to make transactions more conveniently. It also gives an opportunity for swindlers to victimize clueless clients, whose only goal is to create an account online. Don't let yourself be one of them. Trust an online bank that has already established a name and is authorized or endorsed by the right institutions. If you have any slight doubt that the website you are on is fraudulent, close your browser immediately.
2. Choose the bank with which your deposits are insured. You don't want your money to vanish if your bank fails or goes bankrupt. Deposit insurance will give you a guarantee that you will get your money back, and sometimes, with accrued interest.
3. Keep your information private. Some people claim that online banking is safer than brick-and-mortar banking because no one else can have access to your account. This is only true if you don't share private information, especially your passwords, PIN numbers and other information. Never reply to e-mails with your login details. Remember that the only way you can access your account is to visit the official website.
4. Ask. As a customer, you have a right to know everything about your account, a transaction or any service that the bank offers. If there is something you don't understand, especially about fees, charges and rates, do not hesitate to call one of their representatives to inquire.
There are countless Internet banks that mushroom left and right and you have to be armed with the right information regarding what they offer and how to deal with them. It is not enough that you conduct transactions conveniently and comfortably. What is more important is to make sure that each transaction is secure, protected and if possible, profitable.
Want to read more of this article? You can read more tips on Banking Tips, plus other Online Banking Tips only at http://onlinebankpro.com/
Article Source: http://EzineArticles.com/?expert=Aila_Sanchez
Senin, 03 November 2008
Smart banking tips
From Money Magazine, March 2005
Good deals out there
Credit card providers, every-day e-accounts and even home loans are increasingly offering discount deals and cash-back offers to win customers.
As Effie Zahos reports in the March issue of Money magazine, perhaps the most ground-breaking product in recent times is the salary transaction home loan. It works on the principle that interest is calculated daily, so the more you throw in on day one, the more you can save.
It's linked to a credit card. Borrowers are encouraged to deposit all of their salary into the loan, live off their credit card during the interest-free period and withdraw living expenses once a month.
If followed correctly, at 7% a homeowner with a $160,000 25-year mortgage who has a monthly salary of $3100 and spends around $2000 a month can expect to save one year and three months off their term and over $14,000 in interest payments.
Tiered interest rates
Another favourite boost for your financial bottom line can be found in credit cards that offer tiered interest rates. This can be handy if you know you are going to need more then, say, 55 days to pay off a large purchase.
The Commonwealth Bank, for instance, allows some purchases over $1000 to be paid off at a heavily discounted rate of just 0.99%. The rate applies for three months and there's no interest-free period during that time. Then it's back to the regular interest rate of 15% to 17.65%.
Citibank has a credit card that matches interest rates to spending.
Cash-back credit cards
There's only one so far — National Bank's Visa Mini card — but more are sure to follow if the US example is anything to go by. With National, if you spend $1000 a month on your card, you receive $120 cash back each year. You must repay your charges in full each month. If you apply before May 31, the annual fee of $19 will be waived.
Trendy card users may like the fact that the card, nearly half the size of a standard credit card, comes in five different colours, has a phone hook and a cover.
Cash-back home loans
Non-conforming lender Pepper Homeloans recently launched what's probably the only home loan that hands you cash in return for your loyalty. Other lenders offer discounts or rewards but Pepper is the only one that will actually pay you for banking with them.
Every three years and subject to satisfactory payment history, you get a cash-back of one percent of the outstanding loan balance. The rebate is credited to your savings account, not the home loan.
With all these deals, you need to check all the rules and potential costs before you decide they're for you.
For the complete story see Money Magazine's March 2005 issue. Subscribe now
Good deals out there
Credit card providers, every-day e-accounts and even home loans are increasingly offering discount deals and cash-back offers to win customers.
As Effie Zahos reports in the March issue of Money magazine, perhaps the most ground-breaking product in recent times is the salary transaction home loan. It works on the principle that interest is calculated daily, so the more you throw in on day one, the more you can save.
It's linked to a credit card. Borrowers are encouraged to deposit all of their salary into the loan, live off their credit card during the interest-free period and withdraw living expenses once a month.
If followed correctly, at 7% a homeowner with a $160,000 25-year mortgage who has a monthly salary of $3100 and spends around $2000 a month can expect to save one year and three months off their term and over $14,000 in interest payments.
Tiered interest rates
Another favourite boost for your financial bottom line can be found in credit cards that offer tiered interest rates. This can be handy if you know you are going to need more then, say, 55 days to pay off a large purchase.
The Commonwealth Bank, for instance, allows some purchases over $1000 to be paid off at a heavily discounted rate of just 0.99%. The rate applies for three months and there's no interest-free period during that time. Then it's back to the regular interest rate of 15% to 17.65%.
Citibank has a credit card that matches interest rates to spending.
Cash-back credit cards
There's only one so far — National Bank's Visa Mini card — but more are sure to follow if the US example is anything to go by. With National, if you spend $1000 a month on your card, you receive $120 cash back each year. You must repay your charges in full each month. If you apply before May 31, the annual fee of $19 will be waived.
Trendy card users may like the fact that the card, nearly half the size of a standard credit card, comes in five different colours, has a phone hook and a cover.
Cash-back home loans
Non-conforming lender Pepper Homeloans recently launched what's probably the only home loan that hands you cash in return for your loyalty. Other lenders offer discounts or rewards but Pepper is the only one that will actually pay you for banking with them.
Every three years and subject to satisfactory payment history, you get a cash-back of one percent of the outstanding loan balance. The rebate is credited to your savings account, not the home loan.
With all these deals, you need to check all the rules and potential costs before you decide they're for you.
For the complete story see Money Magazine's March 2005 issue. Subscribe now
Minggu, 02 November 2008
Nature of the Industry
Banks safeguard money and valuables and provide loans, credit, and payment services, such as checking accounts, money orders, and cashier’s checks. Banks also may offer investment and insurance products, which they were once prohibited from selling. As a variety of models for cooperation and integration among finance industries have emerged, some of the traditional distinctions between banks, insurance companies, and securities firms have diminished. In spite of these changes, banks continue to maintain and perform their primary role—accepting deposits and lending funds from these deposits.
Goods and services. Banking is comprised of two parts: Monetary Authorities—Central Bank, and Credit Intermediation and Related Activities. The former includes the bank establishments of the U.S. Federal Reserve System that manage the Nation’s money supply and international reserves, hold reserve deposits of other domestic banks and the central banks of other countries, and issue the currency we use. The establishments in the credit intermediation and related services industry provide banking services to the general public. They securely save the money of depositors, provide checking services, and lend the funds raised from depositors to consumers and businesses for mortgages, investment loans, and lines of credit.
Industry organization. There are several types of banks, which differ in the number of services they provide and the clientele they serve. Although some of the differences between these types of banks have lessened as they have begun to expand the range of products and services they offer, there are still key distinguishing traits. Commercial banks, which dominate this industry, offer a full range of services for individuals, businesses, and governments. These banks come in a wide range of sizes, from large global banks to regional and community banks. Global banks are involved in international lending and foreign currency trading, in addition to the more typical banking services. Regional banks have numerous branches and automated teller machine (ATM) locations throughout a multi-state area that provide banking services to individuals. Banks have become more oriented toward marketing and sales. As a result, employees need to know about all types of products and services offered by banks. Community banks are based locally and offer more personal attention, which many individuals and small businesses prefer. In recent years, online banks—which provide all services entirely over the Internet—have entered the market, with some success. However, many traditional banks have also expanded to offer online banking, and some formerly Internet-only banks are opting to open branches.
Savings banks and savings and loan associations, sometimes called thrift institutions, are the second largest group of depository institutions. They were first established as community-based institutions to finance mortgages for people to buy homes and still cater mostly to the savings and lending needs of individuals.
Credit unions are another kind of depository institution. Most credit unions are formed by people with a common bond, such as those who work for the same company or belong to the same labor union or church. Members pool their savings and, when they need money, they may borrow from the credit union, often at a lower interest rate than that demanded by other financial institutions.
Federal Reserve banks are Government agencies that perform many financial services for the Government. Their chief responsibilities are to regulate the banking industry and to help implement our Nation’s monetary policy so our economy can run more efficiently by controlling the Nation’s money supply—the total quantity of money in the country, including cash and bank deposits. For example, during slower periods of economic activity, the Federal Reserve may purchase government securities from commercial banks, giving them more money to lend, thus expanding the economy. Federal Reserve banks also perform a variety of services for other banks. For example, they may make emergency loans to banks that are short of cash, and clear checks that are drawn and paid out by different banks.
Interest on loans is the principal source of revenue for most banks, making their various lending departments critical to their success. The commercial lending department loans money to companies to start or expand their business or to purchase inventory and capital equipment. The consumer lending department handles student loans, credit cards, and loans for home improvements, debt consolidation, and automobile purchases. Finally, the mortgage lending department loans money to individuals and businesses to purchase real estate.
The money banks lend comes primarily from deposits in checking and savings accounts, certificates of deposit, money market accounts, and other deposit accounts that consumers and businesses set up with the bank. These deposits often earn interest for their owners, and accounts that offer checking provide owners with an easy method for making payments safely without using cash. Deposits in many banks are insured by the Federal Deposit Insurance Corporation, which guarantees that depositors will get their money back, up to a stated limit, if a bank should fail.
Recent developments. Technology is having a major impact on the banking industry. Direct deposit allows companies and governments to electronically transfer payments into various accounts. Debit cards, which may also be used as ATM cards, instantaneously deduct money from an account when the card is swiped across a machine at a store’s cash register. Electronic banking by phone or computer allows customers to access information such as account balances and statement history, pay bills, and transfer money from one account to another. Some banks also have begun offering online account aggregation, which makes available in one place detailed and up-to date information on a customer’s accounts held at various institutions.
Advancements in technology have also led to improvements in the ways in which banks process information. The use of check imaging allows banks to store photographed checks on the computer instead of paper files. Also, the availability and growing use of credit scoring software allows lending departments to approve loans in minutes, rather than days.
Other fundamental changes are occurring in the industry as banks diversify their services to become more competitive. Many banks now offer their customers financial planning and asset management services, as well as brokerage and insurance services, often through a subsidiary or third party. Others are beginning to provide investment banking services—usually through a subsidiary—that help companies and governments raise money through the issuance of stocks and bonds. As banks respond to deregulation and as competition in this sector grows, the nature of the banking industry will continue to undergo significant change. From http://www.bls.gov
Goods and services. Banking is comprised of two parts: Monetary Authorities—Central Bank, and Credit Intermediation and Related Activities. The former includes the bank establishments of the U.S. Federal Reserve System that manage the Nation’s money supply and international reserves, hold reserve deposits of other domestic banks and the central banks of other countries, and issue the currency we use. The establishments in the credit intermediation and related services industry provide banking services to the general public. They securely save the money of depositors, provide checking services, and lend the funds raised from depositors to consumers and businesses for mortgages, investment loans, and lines of credit.
Industry organization. There are several types of banks, which differ in the number of services they provide and the clientele they serve. Although some of the differences between these types of banks have lessened as they have begun to expand the range of products and services they offer, there are still key distinguishing traits. Commercial banks, which dominate this industry, offer a full range of services for individuals, businesses, and governments. These banks come in a wide range of sizes, from large global banks to regional and community banks. Global banks are involved in international lending and foreign currency trading, in addition to the more typical banking services. Regional banks have numerous branches and automated teller machine (ATM) locations throughout a multi-state area that provide banking services to individuals. Banks have become more oriented toward marketing and sales. As a result, employees need to know about all types of products and services offered by banks. Community banks are based locally and offer more personal attention, which many individuals and small businesses prefer. In recent years, online banks—which provide all services entirely over the Internet—have entered the market, with some success. However, many traditional banks have also expanded to offer online banking, and some formerly Internet-only banks are opting to open branches.
Savings banks and savings and loan associations, sometimes called thrift institutions, are the second largest group of depository institutions. They were first established as community-based institutions to finance mortgages for people to buy homes and still cater mostly to the savings and lending needs of individuals.
Credit unions are another kind of depository institution. Most credit unions are formed by people with a common bond, such as those who work for the same company or belong to the same labor union or church. Members pool their savings and, when they need money, they may borrow from the credit union, often at a lower interest rate than that demanded by other financial institutions.
Federal Reserve banks are Government agencies that perform many financial services for the Government. Their chief responsibilities are to regulate the banking industry and to help implement our Nation’s monetary policy so our economy can run more efficiently by controlling the Nation’s money supply—the total quantity of money in the country, including cash and bank deposits. For example, during slower periods of economic activity, the Federal Reserve may purchase government securities from commercial banks, giving them more money to lend, thus expanding the economy. Federal Reserve banks also perform a variety of services for other banks. For example, they may make emergency loans to banks that are short of cash, and clear checks that are drawn and paid out by different banks.
Interest on loans is the principal source of revenue for most banks, making their various lending departments critical to their success. The commercial lending department loans money to companies to start or expand their business or to purchase inventory and capital equipment. The consumer lending department handles student loans, credit cards, and loans for home improvements, debt consolidation, and automobile purchases. Finally, the mortgage lending department loans money to individuals and businesses to purchase real estate.
The money banks lend comes primarily from deposits in checking and savings accounts, certificates of deposit, money market accounts, and other deposit accounts that consumers and businesses set up with the bank. These deposits often earn interest for their owners, and accounts that offer checking provide owners with an easy method for making payments safely without using cash. Deposits in many banks are insured by the Federal Deposit Insurance Corporation, which guarantees that depositors will get their money back, up to a stated limit, if a bank should fail.
Recent developments. Technology is having a major impact on the banking industry. Direct deposit allows companies and governments to electronically transfer payments into various accounts. Debit cards, which may also be used as ATM cards, instantaneously deduct money from an account when the card is swiped across a machine at a store’s cash register. Electronic banking by phone or computer allows customers to access information such as account balances and statement history, pay bills, and transfer money from one account to another. Some banks also have begun offering online account aggregation, which makes available in one place detailed and up-to date information on a customer’s accounts held at various institutions.
Advancements in technology have also led to improvements in the ways in which banks process information. The use of check imaging allows banks to store photographed checks on the computer instead of paper files. Also, the availability and growing use of credit scoring software allows lending departments to approve loans in minutes, rather than days.
Other fundamental changes are occurring in the industry as banks diversify their services to become more competitive. Many banks now offer their customers financial planning and asset management services, as well as brokerage and insurance services, often through a subsidiary or third party. Others are beginning to provide investment banking services—usually through a subsidiary—that help companies and governments raise money through the issuance of stocks and bonds. As banks respond to deregulation and as competition in this sector grows, the nature of the banking industry will continue to undergo significant change. From http://www.bls.gov
Kamis, 30 Oktober 2008
Tips for Dealing with a Bank
You are not married to your bank, but you can enjoy a nicer long-term relationship if you try these tips for obtaining attractive interest rates, low fees and solid service. There is always something you can do differently or better to make you feel more comfortable and more "at home"...and perhaps save some time and money, too.
1. Ask yourself, and your bank, if you're getting the best deal - About once a year, talk to a customer services representative at your bank to make sure you're signed up for the right programs to meet your needs. Maybe a simple adjustment to your banking practices - such as having your paycheck automatically deposited into your checking account - can get you a higher interest rate or reduce or eliminate certain service charges. Perhaps a change in your banking habits will help cut your fees. Maybe your good track record at the bank will qualify you for a lower interest rate on a loan or credit card. Or maybe there is just a new or better bank account that you did not know about. I asked at my bank how I could get a better deal on my checking account because I was paying a minimum balance fee and receiving no interest. I was told that because I had additional funds in a money market account I was now eligible for an interest-earning, no-minimum balance checking account. That is a good deal, but I was not aware of it until I raised the question.
Every three or four years (if not more often), comparison-shop to see if you could do significantly better at another bank. Start by listing the products and services you really use—most likely checking, ATMs and one or two others. Make a note of the interest rate, minimum balance requirements and so on. Then go to your statements for the last year or so and calculate the fees and penalties you typically pay—for monthly account maintenance, ATMs, bounced checks, etc. Now compare your bank with three or four others. You might discover that you can earn or save hundreds of dollars by using another bank. Or, better yet, you may find that your own bank still offers a good value or that it is willing to make concessions to keep you as a customer. Then there is little reason to go through the trouble of switching banks. (If you decide to leave your bank, see If You Decide to Switch Banks.)
2. If deposit insurance is important to you, make sure your funds are fully protected - Be sure that your deposits are in a federally insured institution. For more details, see Is My Money Safe?
3. Simplify your life. Your bank can arrange for the "direct deposit" of your pay and benefit checks and other regular income. Most experts agree that direct deposit is safer and more convenient than paper checks. There are no delays in getting funds deposited because checks are not lost in the mail, forgotten at home or waiting for you to return from vacation. As mentioned previously, you might even get a break on your checking account if your paycheck is deposited electronically.
You also can have your bank automatically make some of your regular payments, such as your mortgage, health insurance premiums, utility bills and investments in a mutual fund. That can be an easy, economical alternative to writing and mailing a lot of checks each month. Also think about doing other banking the high-tech way, such as withdrawing money from ATMs instead of standing in line at the branch or rushing to get to the branch during banking hours. Consider using a "debit card" or "check card" to pay for purchases from your checking account without writing a check. Banking from home, by phone or computer, also can be a time-saver.
4. Get to know bank employees you can turn to for help. Write down the names and numbers of employees who, in-person or over the phone, seem to be especially helpful and knowledgeable. If possible, become a familiar voice or face to them. Why go to this trouble? A good teller, branch manager, customer service representative, loan officer or supervisor can help get your questions answered and your problems solved. They may even come to your aid in a financial emergency, especially if they know you and that you have a good relationship with the bank.
5. Do not be afraid to complain. No bank employee really enjoys hearing from a disgruntled customer. But your bank's managers probably would prefer you bring a problem to their attention and be given the chance to fix it rather than take your business elsewhere or tell all your friends about "that lousy bank." If you do not get satisfaction from a customer service representative or another employee, consider talking to a supervisor...or even one of your banker buddies mentioned in the previous item. And if you are still having problems, consider contacting the institution's federal regulator. (For more tips on how to resolve a dispute with your bank, see If You Have a Complaint about a Bank.)
6. Do not be afraid to ask for a break. Bounce a check for the first time ever? Want a copy of an old monthly statement? Think the fees for your mortgage application are a bit high? Depending on the circumstances, your bank might be willing to reduce or waive a fee or penalty, especially if you have been a good customer and do not have a history as a "repeat offender." Also consider talking to your banker if you are having problems repaying your bank loan. Explain the situation and any unusual circumstances. Many lenders will agree to temporary or permanent reductions in your loan interest rate, monthly payment or other charges. Again, it helps if you have had a clean record in the past.
7. Read your monthly statements. Your bank statements, credit card bills and other mailings from your bank may not make for exciting reading, but they can be among the most important literature you will read. Tucked inside any envelope from your bank could be your only notice about new fees or penalties for certain accounts. If you are not aware of these changes, and you do not notice the higher fees on your next monthly statements, you could end up paying more for your banking and not even realize it.
Also review your bank statement as soon as possible after it arrives to make sure there are no unauthorized charges. If you suspect that a thief has used one of your checks or your credit card, go right to the phone and call the bank (see Unauthorized Use of Your Account (What to Do if Your Identity is Stolen). Under most state laws, you are required to exercise "reasonable promptness" in examining any bank statement that shows payments from your account.
How quickly you report a problem with an ATM debit card could be especially important in limiting your losses. Your maximum loss is just $50 if you report your ATM debit card lost or stolen within two business days of discovering the problem. But if you wait between two and 60 days, you can be liable for up to $500 of what a thief withdraws. Wait more than 60 days after receiving a bank statement with an unauthorized ATM transfer and you may be responsible for all the money withdrawn. (You are not responsible for funds withdrawn after you notify the bank that the ATM card is lost or stolen.)
Another good reason to look at your bank statement as soon as possible is to make sure you have enough in your checking account to avoid bounced checks.
8. Read the fine print. Knowing the costs and requirements of an account before you sign on the dotted line can prevent a complaint or hassle later. Example: Just because a bank account is advertised as "free" or "no cost" does not mean you will never run up a cost. An institution is not allowed to advertise a "free" checking account if you could be charged a maintenance or activity fee (such as for going below a required minimum balance). But your bank can offer a free account and still impose charges for certain services, such as check printing, automated teller machines and bounced checks. Also, ask if an attractive interest rate on a credit card or a deposit is really just a short-term, introductory "teaser" rate.
9. Keep good records. Hold on to your receipts for deposits, ATM withdrawals, credit card charges and other transactions long enough to confirm that your monthly account statements are correct. (Later it's OK to toss these pieces of paper in the trash, but be sure to rip them up enough so that a thief cannot read or use them.) Also, keep copies of any contracts or other documents you sign with the bank (loans, certificates of deposit, etc.), along with any accompanying materials. If there is ever a dispute or a discrepancy, you will have those documents to refer back to.
10. Use your bank as an information resource. A good banker can be an excellent source of advice and information-perhaps about starting or expanding a business, buying a car or home, qualifying for a loan or dealing with a debt problem. He or she also might be able to direct you to good contacts in other businesses or have excellent reference material handy. All of this is yet another reason to get to know the right people at the bank.
Your bank also could have a customer newsletter or a website that provides useful tips for handling your financial affairs. Many banks also offer seminars on topics such as saving for retirement or a child's college education. Add this information to everything else you learn from your lawyer, accountant, financial planner, the media and other sources, and then put it to use when shopping for, or using, financial services. And anything you can learn from the bank about your rights and responsibilities as a consumer can help you avoid misunderstandings and get any problems solved quickly.
Final Thoughts. It is a good idea periodically to shop for and compare financial services, just as you would any consumer goods. If nothing else, you will want to know that the rates, fees and services at your existing bank are at least comparable to what is out there in the marketplace. You will receive more satisfaction from your bank when you know the people there and the services they can provide. Every relationship has its ups and downs, but with a little effort, you might just feel more at home with your bank.
1. Ask yourself, and your bank, if you're getting the best deal - About once a year, talk to a customer services representative at your bank to make sure you're signed up for the right programs to meet your needs. Maybe a simple adjustment to your banking practices - such as having your paycheck automatically deposited into your checking account - can get you a higher interest rate or reduce or eliminate certain service charges. Perhaps a change in your banking habits will help cut your fees. Maybe your good track record at the bank will qualify you for a lower interest rate on a loan or credit card. Or maybe there is just a new or better bank account that you did not know about. I asked at my bank how I could get a better deal on my checking account because I was paying a minimum balance fee and receiving no interest. I was told that because I had additional funds in a money market account I was now eligible for an interest-earning, no-minimum balance checking account. That is a good deal, but I was not aware of it until I raised the question.
Every three or four years (if not more often), comparison-shop to see if you could do significantly better at another bank. Start by listing the products and services you really use—most likely checking, ATMs and one or two others. Make a note of the interest rate, minimum balance requirements and so on. Then go to your statements for the last year or so and calculate the fees and penalties you typically pay—for monthly account maintenance, ATMs, bounced checks, etc. Now compare your bank with three or four others. You might discover that you can earn or save hundreds of dollars by using another bank. Or, better yet, you may find that your own bank still offers a good value or that it is willing to make concessions to keep you as a customer. Then there is little reason to go through the trouble of switching banks. (If you decide to leave your bank, see If You Decide to Switch Banks.)
2. If deposit insurance is important to you, make sure your funds are fully protected - Be sure that your deposits are in a federally insured institution. For more details, see Is My Money Safe?
3. Simplify your life. Your bank can arrange for the "direct deposit" of your pay and benefit checks and other regular income. Most experts agree that direct deposit is safer and more convenient than paper checks. There are no delays in getting funds deposited because checks are not lost in the mail, forgotten at home or waiting for you to return from vacation. As mentioned previously, you might even get a break on your checking account if your paycheck is deposited electronically.
You also can have your bank automatically make some of your regular payments, such as your mortgage, health insurance premiums, utility bills and investments in a mutual fund. That can be an easy, economical alternative to writing and mailing a lot of checks each month. Also think about doing other banking the high-tech way, such as withdrawing money from ATMs instead of standing in line at the branch or rushing to get to the branch during banking hours. Consider using a "debit card" or "check card" to pay for purchases from your checking account without writing a check. Banking from home, by phone or computer, also can be a time-saver.
4. Get to know bank employees you can turn to for help. Write down the names and numbers of employees who, in-person or over the phone, seem to be especially helpful and knowledgeable. If possible, become a familiar voice or face to them. Why go to this trouble? A good teller, branch manager, customer service representative, loan officer or supervisor can help get your questions answered and your problems solved. They may even come to your aid in a financial emergency, especially if they know you and that you have a good relationship with the bank.
5. Do not be afraid to complain. No bank employee really enjoys hearing from a disgruntled customer. But your bank's managers probably would prefer you bring a problem to their attention and be given the chance to fix it rather than take your business elsewhere or tell all your friends about "that lousy bank." If you do not get satisfaction from a customer service representative or another employee, consider talking to a supervisor...or even one of your banker buddies mentioned in the previous item. And if you are still having problems, consider contacting the institution's federal regulator. (For more tips on how to resolve a dispute with your bank, see If You Have a Complaint about a Bank.)
6. Do not be afraid to ask for a break. Bounce a check for the first time ever? Want a copy of an old monthly statement? Think the fees for your mortgage application are a bit high? Depending on the circumstances, your bank might be willing to reduce or waive a fee or penalty, especially if you have been a good customer and do not have a history as a "repeat offender." Also consider talking to your banker if you are having problems repaying your bank loan. Explain the situation and any unusual circumstances. Many lenders will agree to temporary or permanent reductions in your loan interest rate, monthly payment or other charges. Again, it helps if you have had a clean record in the past.
7. Read your monthly statements. Your bank statements, credit card bills and other mailings from your bank may not make for exciting reading, but they can be among the most important literature you will read. Tucked inside any envelope from your bank could be your only notice about new fees or penalties for certain accounts. If you are not aware of these changes, and you do not notice the higher fees on your next monthly statements, you could end up paying more for your banking and not even realize it.
Also review your bank statement as soon as possible after it arrives to make sure there are no unauthorized charges. If you suspect that a thief has used one of your checks or your credit card, go right to the phone and call the bank (see Unauthorized Use of Your Account (What to Do if Your Identity is Stolen). Under most state laws, you are required to exercise "reasonable promptness" in examining any bank statement that shows payments from your account.
How quickly you report a problem with an ATM debit card could be especially important in limiting your losses. Your maximum loss is just $50 if you report your ATM debit card lost or stolen within two business days of discovering the problem. But if you wait between two and 60 days, you can be liable for up to $500 of what a thief withdraws. Wait more than 60 days after receiving a bank statement with an unauthorized ATM transfer and you may be responsible for all the money withdrawn. (You are not responsible for funds withdrawn after you notify the bank that the ATM card is lost or stolen.)
Another good reason to look at your bank statement as soon as possible is to make sure you have enough in your checking account to avoid bounced checks.
8. Read the fine print. Knowing the costs and requirements of an account before you sign on the dotted line can prevent a complaint or hassle later. Example: Just because a bank account is advertised as "free" or "no cost" does not mean you will never run up a cost. An institution is not allowed to advertise a "free" checking account if you could be charged a maintenance or activity fee (such as for going below a required minimum balance). But your bank can offer a free account and still impose charges for certain services, such as check printing, automated teller machines and bounced checks. Also, ask if an attractive interest rate on a credit card or a deposit is really just a short-term, introductory "teaser" rate.
9. Keep good records. Hold on to your receipts for deposits, ATM withdrawals, credit card charges and other transactions long enough to confirm that your monthly account statements are correct. (Later it's OK to toss these pieces of paper in the trash, but be sure to rip them up enough so that a thief cannot read or use them.) Also, keep copies of any contracts or other documents you sign with the bank (loans, certificates of deposit, etc.), along with any accompanying materials. If there is ever a dispute or a discrepancy, you will have those documents to refer back to.
10. Use your bank as an information resource. A good banker can be an excellent source of advice and information-perhaps about starting or expanding a business, buying a car or home, qualifying for a loan or dealing with a debt problem. He or she also might be able to direct you to good contacts in other businesses or have excellent reference material handy. All of this is yet another reason to get to know the right people at the bank.
Your bank also could have a customer newsletter or a website that provides useful tips for handling your financial affairs. Many banks also offer seminars on topics such as saving for retirement or a child's college education. Add this information to everything else you learn from your lawyer, accountant, financial planner, the media and other sources, and then put it to use when shopping for, or using, financial services. And anything you can learn from the bank about your rights and responsibilities as a consumer can help you avoid misunderstandings and get any problems solved quickly.
Final Thoughts. It is a good idea periodically to shop for and compare financial services, just as you would any consumer goods. If nothing else, you will want to know that the rates, fees and services at your existing bank are at least comparable to what is out there in the marketplace. You will receive more satisfaction from your bank when you know the people there and the services they can provide. Every relationship has its ups and downs, but with a little effort, you might just feel more at home with your bank.
Rabu, 29 Oktober 2008
Definition of Bank
An organization, usually a corporation, chartered by a state or federal government, which does most or all of the following: receives demand deposits and time deposits, honors instruments drawn on them, and pays interest on them; discounts notes, makes loans, and invests in securities; collects checks, drafts, and notes; certifies depositor's checks; and issues drafts and cashier's checks.
Types of Accounts Typically Offered by Banks
Although banks offer a wide variety of accounts, they can be broadly divided into five types: savings accounts, basic checking accounts, interest-bearing checking accounts, money market deposit accounts, and certificates of deposit. All five are insured by the FDIC (in most cases, up to $100,000 per account). Most banks offer all of these types of accounts, so the bank you choose probably won't restrict this decision, although it does make sense to choose the account type you want first, so you can focus on that type as you shop around to various banks. Here is a brief description of each type of account:
Savings Accounts
These are intended to provide an incentive for you to save money. You can make deposits and withdrawals, but usually can't write checks. They usually pay an interest rate that's higher than a checking account, but lower than a money market account or CD. Some savings accounts have a passbook, in which transactions are logged in a small booklet that you keep, while others have a monthly or quarterly statement detailing the transactions. Some savings accounts charge a fee if your balance falls below a specified minimum.
Basic Checking Accounts
Sometimes also called "no frills" accounts, these offer a limited set of services at a low cost. You'll be able to perform basic functions, such as check writing, but they lack some of the bells and whistles of more comprehensive accounts. They usually do not pay interest, and they may restrict or impose additional fees for excessive activity, such as writing more than a certain number of checks per month.
Interest-Bearing Checking Accounts
In contrast to "no frills" accounts, these offer a more comprehensive set of services, but usually at a higher cost . Also, unlike a basic checking account, you are usually able to write an unlimited number of checks. Checking accounts which pay interest are sometimes referred to as negotiable order of withdrawal (NOW) accounts. The interest rate often depends on how large the balance in the account is, and most charge a monthly service fee if your balance falls below a preset level.
Money Market Deposit Accounts (MMDAs)
These accounts invest your balance in short-term debt such as commercial paper, Treasury Bills, or CDs. The rates they offer tend to be slightly higher than those on interest-bearing checking accounts, but they usually require a higher minimum balance to start earning interest. These accounts provide only limited check writing privileges (three transfers by check, and six total transfers, per month), and often impose a service fee if your balance falls below a certain level.
Certificates of Deposit (CDs)
These are also known as "time deposits", because the account holder has agreed to keep the money in the account for a specified amount of time, anywhere from three months to six years. Because the money will be inaccessible, the account holder is rewarded with a higher interest rate, with the rate increasing as the duration increases. There is a substantial penalty for early withdrawal, so don't select this option if you think you might need the money before the time period is over (the "maturity date").
Types of Accounts Typically Offered by Banks
Although banks offer a wide variety of accounts, they can be broadly divided into five types: savings accounts, basic checking accounts, interest-bearing checking accounts, money market deposit accounts, and certificates of deposit. All five are insured by the FDIC (in most cases, up to $100,000 per account). Most banks offer all of these types of accounts, so the bank you choose probably won't restrict this decision, although it does make sense to choose the account type you want first, so you can focus on that type as you shop around to various banks. Here is a brief description of each type of account:
Savings Accounts
These are intended to provide an incentive for you to save money. You can make deposits and withdrawals, but usually can't write checks. They usually pay an interest rate that's higher than a checking account, but lower than a money market account or CD. Some savings accounts have a passbook, in which transactions are logged in a small booklet that you keep, while others have a monthly or quarterly statement detailing the transactions. Some savings accounts charge a fee if your balance falls below a specified minimum.
Basic Checking Accounts
Sometimes also called "no frills" accounts, these offer a limited set of services at a low cost. You'll be able to perform basic functions, such as check writing, but they lack some of the bells and whistles of more comprehensive accounts. They usually do not pay interest, and they may restrict or impose additional fees for excessive activity, such as writing more than a certain number of checks per month.
Interest-Bearing Checking Accounts
In contrast to "no frills" accounts, these offer a more comprehensive set of services, but usually at a higher cost . Also, unlike a basic checking account, you are usually able to write an unlimited number of checks. Checking accounts which pay interest are sometimes referred to as negotiable order of withdrawal (NOW) accounts. The interest rate often depends on how large the balance in the account is, and most charge a monthly service fee if your balance falls below a preset level.
Money Market Deposit Accounts (MMDAs)
These accounts invest your balance in short-term debt such as commercial paper, Treasury Bills, or CDs. The rates they offer tend to be slightly higher than those on interest-bearing checking accounts, but they usually require a higher minimum balance to start earning interest. These accounts provide only limited check writing privileges (three transfers by check, and six total transfers, per month), and often impose a service fee if your balance falls below a certain level.
Certificates of Deposit (CDs)
These are also known as "time deposits", because the account holder has agreed to keep the money in the account for a specified amount of time, anywhere from three months to six years. Because the money will be inaccessible, the account holder is rewarded with a higher interest rate, with the rate increasing as the duration increases. There is a substantial penalty for early withdrawal, so don't select this option if you think you might need the money before the time period is over (the "maturity date").
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